Crypto red flags

Crypto can bring a lot of excitement and opportunities, but it can also attract some risks that everyone must be aware of to trade with confidence. We wanted to highlight two of the most common risks (which we’re calling “red flags”), to help you recognize them as early as possible.

Redflag 1: unreliable projects

Before investing, make sure to research and read up on crypto projects. Projects that avoid regulation expose users to unnecessary risk. As you research, make sure that the team behind any project displays levels of transparency. Lack of transparency when it comes to team members, purpose, or the technology used to develop the project may be early signs of high risk.

Taking the time to get to know a project may save you from permanent loss of funds through schemes such as pump-and-dump schemes, which use social media platforms to hype and artificially inflate token prices, and abandon the project before early traders can sell.

Redflag 2: crypto scams

Scammers can hijack projects or even wallets. Keep an eye out for any communication you receive that is coming from a source you don’t recognize. Additionally, be wary of unrealistic promises such as guaranteed returns on your crypto investments; it’s important to remember that crypto is volatile and no profits are guaranteed. Another tactic that you should consider is how scammers usually pressure you with a sense of urgency to complete a transaction.

Scammers might use websites similar to Rain in name or design as a trick to get access to funds. With any communication you receive, whether on email or text message, check the links and email addresses. If you don’t recognize them, you can ignore them or reach out to us for help. Our team is available 24/7 to hear from you.

With that said, trading on Rain is done in a regulated environment where risks are explained clearly. As a licensed crypto platform, we value transparency and apply the most robust security systems to protect your information and funds. Rain ensures that you get access to all the needed information on our Market page before you dive into investing. We have also put together this guide to help you detect scams for further information.